Is there a way to keep a home if your partner passes?
My boyfriend and I have lived together for 6 years and have children together. He bought a home, and I was not able to be put on the title at closing because I am not on the loan. I was told this would be an option later on, but after doing research, I've discovered that it might not be an option to add me to the title unless the remainder of the loan is paid in full, which obviously isn't an option.
In the event that my partner passes, is there something we could do so that I could pay the mortgage and stay in the home with my kids?
Would I have to be approved by the mortgage company to take over the loan, or could he leave the house to me even with a mortgage?
**neither of us wants to be married.
- BLv 71 year ago
someone lied to you because anybody's name can get put on to the title, you need to get a lawyer now.
- ?Lv 61 year ago
- SlumlordLv 71 year ago
If he simply writes up a will and gives you the house in the will, then it will pass to you when he dies. Typically the mortgage passes to the heir (but not necessarily if you are not married - this may be state dependant).
So, if the mortgage keeps getting paid then everything will probably be fine (again, not sure about this since you are not related or married but I think thats the law in most states if not all and even if that were not the law I still doubt the bank would do anything so long as that mortgage payment kept coming).
If, however, you can't afford the mortgage then eventually you will fall behind and this would likely force you to get a new loan yourself (with a lower payment if you can swing that) or sell the place, or possibly lose it in foreclosure if there is no equity.
- Coffee DrinkerLv 71 year ago
You guys live together, share major financial assets (a house) and are raising children together. There are some basic legal items you need to put in place to protect everyone regardless of when/if you ever get legally married.
1. You both need a will. This is simple and can be done with forms you download from the internet or with a $30 software program, or for about $300 at any local attorney's office. Write a will and get it notarized (check state laws to see if you need to file it with a local court or something). The will should say that each of you inherits the other person's financial assets if the other dies - this would include the house. The will should also list who you want to take care of the kids if both of you pass - perhaps one of you has a sibling, parent or other relative.
2. You need life insurance on him, and probably a small policy on yourself.
In most cases, I recommend a simple term life policy that pays you a lump sum if he dies for any reason (there are a few exceptions for things like suicide or being killed in military combat). The policy should be large enough that you could pay off the mortgage and cover other bills and expenses for a while until you get on your feet as a single mom. Ideally enough to cover living expenses until the children are at least old enough to get jobs, preferably old enough to move out. Term life is cheap if he's relatively healthy, he could get a half million dollar coverage for around $50/ month. If you are a stay-at-home-mom then you should carry a small policy on yourself. You don't necessarily need enough to pay off the house and put the kids through college, but you'll want enough that he can pay for your funeral, take some time off work to grieve your loss and figure out daycare or other situational issues without having to rush back to work to pay the bills.
3. You should also have long term disability insurance on him. Statistics show that a moderately healthy middle age adult is far more likely to face financial hardship due to a disability that prevents them from working than they are to die. See if he can get LTD insurance through his employer and if not, then buy it from a private company (and have him look for a better job because LTD is part of the benefit plan at any decent company these days).
4. You should have a health care directive and health care power of attorney documents. The directive tells people how you want them to treat you (or not) if you are too sick to make medical decisions for yourself. The POA document gives a specific person the legal authority to make medical decisions for you if you are unable to make them yourself. Even married couple should have these, but its especially important for unmarried couples because without these documents you would have no legal rights in determining his medical care and that authority would default to blood relatives even if that was not his desire. Of course only do the medical POA if that's what you actually want.
You can add your name to the deed if that makes you feel better, but really these 4 items are far more critical to ensuring that life carries on for you and the children if he passes away.
One thing you can't fix with legal documents would be social security. If he has been working and paying SS taxes and died, you could draw spousal benefits. But the ONLY way to qualify is to be legally married. You would however qualify to claim survivor benefits for the children if he dies while they're still minors (under 18), they would qualify for a benefit and it gets paid to the child's legal guardian which would be you, so that you can spend it on food, housing, etc to take care of the kids.
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- Beverly SLv 71 year ago
He can quit claim you onto the property with him anytime. You won't be on the note, but you will be on title/deed meaning you own it with him. He would need to call the mortgage company & tell them you are authorized to talk with them. You would just continue to make the payments..................... You can't take over the loan- you would have to get your own mortgage & use it to pay the house off & then pay your own mortgage.Source(s): Mortgage lender 33 years.
- SlickterpLv 71 year ago
Yeah, he writes a will leaving you the house. You will have to refinance in your own name. Mortgages in general are not assumable.
- babyboomer1001Lv 71 year ago
Whether you can take over the loan - whether it is transferable depends on the loan document. Some are transferable and some are not. You may be able to continue making the payments and nobody would care. However, some mortgages are called due when the recipient of the loan dies. You have not posted the terms of the loan so - how can we know? Also, who is your bf's beneficiary? Since you have children together, the house might very well be left to the minor children, and you would likely be appointed their trustee, which means you would all stay in the house. You have not posted enough information to know much so we can only guess as to what might happen. Consult a lawyer if you want to know facts - he will read the loan document and be able to obtain information that you have not provided.
- curtisports2Lv 71 year ago
It CAN be true that adding you to the title would be looked at by the lender as a transfer of some ownership interest by the owner (bf) and that would trigger the doe on sale clause in the mortgage. But it is not true in every case. Read the mortgage document to see what it says about that.
The best thing would be to stop living together unmarried and get married. Here is why.
He can leave his ownership interest in the house to you via a will. You don't have to be married for that. But if you are married, there is a law that allows you to take over the mortgage and the lender cannot invoke the due on sale clause. If you are not married or are not otherwise legal family to him (a child of a deceased parent, parent of deceased child, a sibling etc) this law will not apply to you. The law is part of the Garn-St Germain Depositor Act of 1982, and while domestic partnerships are being recognized in regard to property rights in more states, Congress would need to amend that Act for it to help you in this case. So I suggest getting married. If you do that, a lender might not object to adding you to the deed, and then leaving the house in a will wouldn't be necessary.
Update to yours: If marriage is absolutely out, and his lender will not agree to you being added to the deed of title (look into that first) then he should purchase a mortgage insurance policy, a type of term insurance with a fixed monthly or annual premium but a declining benefit - the insurance payout declines as the mortgage balance declines. Then there would be no issues with him leaving the house to you via his will - except one. If he dies with debt his estate cannot pay with other estate assets, the house may have to be sold to cover those debts. You could then obtain your own mortgage (more likely a line of credit) on the house in an amount to cover those debts.
- ?Lv 71 year ago
He needs a will, especially since he has children. He should get a life insurance policy large enough to pay off the mortgage and leave some money for you and the kids. Term policies are not that expensive. You have no legal standing as his girlfriend, so in the absence of a will, the house would go to his children. You would have to refinance to keep it. If you were married, they would probably allow you to assume the loan, but as I said getting insurance to cover it would be a much smarter idea.
- JudyLv 71 year ago
He can't just leave it to you, but could get life insurance to pay it off, then leave you the mortgage-free house in his will.